Tax break for Paltz dorm project draws fire

Thursday

Jan 30, 2014 at 2:00 AM

NEW PALTZ — A public hearing on whether to grant a 25-year tax break to the developer of a proposed SUNY New Paltz housing complex drew several hundred people and a slew of negative comments from town and county officials.

BY JEREMIAH HORRIGAN

NEW PALTZ — A public hearing on whether to grant a 25-year tax break to the developer of a proposed SUNY New Paltz housing complex drew several hundred people and a slew of negative comments from town and county officials.

Speakers Tuesday argued that the tax break, known as a PILOT or payment in lieu of taxes, was unjustified and that the Ulster County Industrial Development Agency, which was holding the hearing, had questionably allowed dormitories to qualify for tax exemptions.

Several speakers said the developer had conducted insufficient or inaccurate needs and benefits assessments.

Kevin Wilmot, financial vice president for the Rochester developer, Wilmorite, said the $50 million project would bring 215 construction jobs over an 18-month period and 10 new permanent jobs. "Without help from the IDA, the project cannot move forward," he said.

Ulster County Legislator Ken Wishnick questioned whether the IDA's inclusion of a dormitory exemption two years after the project had been announced had been created specifically for Wilmorite's benefit.

Ulster County Comptroller Elliott Auerbach told the board members that 31 percent of the town of New Paltz's total assessed value was already wholly tax exempt.

New Paltz Supervisor Susan Zimet acknowledged the importance of the college to the community's economy, but said the project's tax burden should not be carried by its residents. Zimet has said the PILOT will save the developer $32.3 million over the 25-year period.

She said the Town Board believes the cost to taxpayers far outweighs the benefits of the project and that the company has not proved the PILOT was critical to the project.